Responsible Sourcing Framework

In 2013, we introduced our Responsible Sourcing Framework, which includes a four-step approach that combines individual tools developed over the past five years.

CATEGORY SUSTAINABILITY PROFILES

The Category Sustainability Profiles primarily serve as a risk filter and describe potential environmental, social and governance (ESG) related risks for aluminum, steel and coatings. We generate the profiles based on our extensive experience with life cycle assessments, industry standards (such as ASI), and media and stakeholder screening. They list high-risk countries because certain ESG risks, like human rights abuses or climate change impacts, are more prevalent in certain regions of the world.

ONBOARDING REQUIREMENTS

With our Onboarding Requirements, we communicate and align the way our suppliers consider ESG aspects, and aim to receive written confirmation that responsible business practices are maintained throughout our supply chain. This way, we also ensure that our suppliers abide by all applicable laws and regulations.

For example, we require our suppliers to comply with Ball's Supplier Guiding Principles. The principles were developed with input from key customers, suppliers and socially responsible investment analysts, and require that our suppliers certify and demonstrate compliance with them. They cover employment practices, human rights, environment, health and safety, antitrust, bribery and corruption. During the reporting period, Ball provided this document to suppliers and incorporated the principles as part of all new contractual relationships.

New contracts also include clauses on human trafficking. Our form supplier agreements require vendors to provide conflict minerals certifications. Ball’s Conflict Minerals Policy includes information on how we support laws related to ending the violence and human rights violations in the mining of certain minerals in the Democratic Republic of the Congo and surrounding countries. Our Conflict Minerals Report for the year ended December 31, 2015, details the due diligence we have performed as required in Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

SUPPLIER SUSTAINABILITY PROFILES

Supplier Sustainability Profiles are based on media screening, direct dialogue with suppliers and a sustainability self-assessment questionnaire, which we rolled out globally during the reporting period. The 17 questions, covering management systems and transparency, ESG risks, supply chain management and product stewardship, provide a self-evaluation of each supplier, which populates a supplier scorecard. In 2013, we achieved a 93 percent response rate.

CONTINUOUS IMPROVEMENT

If a supplier scores below expectations, we jointly develop a Continuous Improvement plan. By developing and approving cooperative programs and timetables, both partners can be successful for the long term. Ball may terminate business relations if a supplier violates a fundamental aspect of our requirements and is unwilling to change.